Sept. 7 (Bloomberg) -- Vale SA, the world’s largest iron-ore producer, jumped the most since January in New York as
investors speculated Chinese government spending and European
Central Bank bond purchases will benefit commodities producers.

Global commodities and equities extend a rally after China
approved plans to build 2,018 kilometers (1,254 miles) of roads,
signaling the world’s second-largest economy is stepping up
stimulus efforts to revive growth a day after the European
Central Bank agreed to an unlimited bond-buying program.

“This is exactly what investors have been waiting for to
start buying,” Laurence Balter, who oversees $100 million for
Fox Island, Washington-based Oracle Investment Research,
including Vale shares, said in e-mailed comments. “The most
obvious choice is commodity producers such as Vale; they are
cheap and have bottomed out.”

Vale’s American depositary receipts jumped 6.8 percent to
close at $18.03 in New York, the biggest advance since Jan. 3.
The ADRs have risen 10 percent since Aug. 31, the biggest weekly
gain since October and reducing a year-to-date slump to 16
percent.

Vale’s shares in Sao Paulo, which aren’t trading today
because of an Independence Day public holiday, fetch 6.2 times
reported earnings compared with the Brazilian benchmark’s ratio
of 18.8, according to data compiled by Bloomberg. That’s the
biggest gap since December 2009, the data show.